Debt Consolidation Help
Debt consolidation sounds like the easy way out of all your debt worries, but sometimes borrowing more to pay your creditors back isn’t such a good idea. If you want debt consolidation to be a success, you’ve got to be smart about it. Watch out for companies that only end up charging you more in fees and high interest rates.
If you’re suffering under the weight of your many debts, consolidation may be the answer. Before you turn to a company that offers to take care of everything, if you are willing to pay off your debt faithfully over the next 40 years, here are some options to try.
Negotiate With Your Creditors
You’d be surprised what you can do by just calling your credit card company and asking to negotiate for better terms. This will often work, and in the long run it will save you time and money.
Before you call them, make sure you’re finances are in order. The more organized you are, the more likely they’ll be to re-negotiate. They want to know that you’re committed to getting your debt to them paid off. They also want to know that re-paying is a hardship right now, and they don’t want to lose your money to bankruptcy.
Start with the highest interest rate credit card, and work your way down. If your debt troubles seem too overwhelming for simply renegotiating, let’s go ahead and get your debt consolidation going.
Take Out A Personal Loan
You can consolidate your debt yourself by taking out a personal loan and using it to pay off your debts. You can get either a secured or unsecured loan from a bank or credit union. A secured loan is a better deal because it will carry a lower interest rate. Secured loans use your home or other assets as collateral. This is why their rates are lower, but it also means that if you’re unable to pay, they can take your house. They are also easier to get than unsecured loans, which offer no collateral.
The best place to go for your loan is your local credit union. They will offer better rates than a private bank, and they’ll be more willing to take your case if your credit is spotty. Head down to the credit union with all your financial records in hand, and a representative will tell you what they can do for you.
The Credit Counseling Option
Another good place to go for help is a non-profit community credit counseling service. These are organizations that help folks just like you to consolidate their loans, get their finances in order, and re-negotiate with their creditors. They may charge a small fee for their services, or they’ll do it for free, depending on the organization.
For one-stop debt consolidation help, these are the best places to go. In addition to helping you out of your problems, they’ll also provide all kinds of resources and information.
Consolidating your debts is a great way to make them more manageable. When you’re monthly payments are out of hand, it’s a great option. But remember – You still have to pay off the debts! Make sure that you’re willing to get it done before you put your debts together.
